Third Week Spike In Mortgage Applications

By Liz Clinger Updated on 5/23/2012

With record low rates, it’s no wonder that mortgage application filings are rising. The refinance application activity raised a significant 5.6%, though home purchase decreased 3% from the week before, according to the MBA. The total mortgage applications filing for the week ending May 18, 2012 rose 3.8% from the week before.

The Mortgage Bankers Association vice president of research and economics, Michael Fratantoni claimed the debt crisis in Europe and the recent French elections are the cause of the U.S 10-year Treasury yield dropping below 1.7% last week. With the mortgages rates dropping again into record lows, the refinance market increased and are are at the highest level of applications since February.

Refinancing activity rose to 76.6% of all mortgage activity, from last week’s 74.9%.

Rates continue to decrease for 30-year fixed rate mortgage with conforming limits under $417.5K, landing at 3.93%, once again a record breaking low in the survey’s history. 30-year FRM’s backed by FHA reached 3.73% on average, a 0.02% decrease from last week’s 3.75%

30-year FRM jumbo loans actually saw an increase in rate, reaching 4.25% from last week’s 4.20%. 5/1 ARM rate also increased, raising 0.03% to reach 2.83% from last week’s 2.80%.

15-year FRM’s stayed at 3.26% with no increase or decrease from the week before.